China mulls rolling back retaliatory tariffs on some US goods.

#tarriffwar US-China

🔸China has previously stated it would “fight to the end” unless US tariffs were lifted.

🔸In a significant move in the ongoing trade war with the United States, China is considering exempting some American imports from its steep 125% retaliatory tariffs.

🔸The Ministry of Commerce has formed a task force to collect information from businesses & identify goods that could be eligible for exemptions, according to a source familiar with the discussions.

🔸The move, first reported by Bloomberg, suggests that Beijing may be softening its hardline stance as fears of economic slowdown intensify.

🔸Financial magazine Caijing cited sources claiming that eight semiconductor-related items—though notably excluding memory chips—are being considered for exemption. 🔸Meanwhile, a widely circulated list of 131 product categories, including

Vaccines, chemicals & jet engines has sparked speculation within business circles & Chinese social media. Reuters has not independently verified the list.

🔸The Ministry of Commerce & China’s customs department have yet to officially comment, despite repeated inquiries.

🔸Trump says China's Xi has called him and that US & China are in trade talks.

🔸China’s economy is grappling with weak demand, deflationary pressures & consumer confidence that has yet to rebound post-pandemic. Exporters have been urged to shift focus to domestic markets, but many report lower profits & unstable demand.

🔸Though tariff exemptions may slightly ease tensions with the US, they also reflect the pressure Beijing faces to stabilise its economy. The move may benefit US exporters & relieve some pressure on the Biden administration, while allowing China to offer modest relief to its struggling industries without making major concessions.#Write2Earn